is April $30,2022.$ Caleb Jamal has worked for several years at SchoolStreet, Inc. Yesterday, the CEO informed Caleb that he would be retiring, effective immediately, and the Board of Directors has appointed Caleb the new CEO. After a brief celebration, Caleb arrives work today ready to accept his responsibilities. Caleb is immediately confronted with a number of investment and Corporate finance decisions.

Caleb$$s first priority is to understand the company$$s capital budgeting analysis. He is looking at upgrading the firm$$s production capacity in an effort to improve the company$$s competitive position. Caleb estimates that SchoolStreet$$s cost of capital is $10\%.$

Caleb is being assisted by Celestila Moonn, an UMB MBA intern at SchoolStreet. Moonn estimates that travel and hotel costs expended as a result of their research and the trade shows they attended amounted to $$8,000.$ Caleb considers the money well spent because he now had two great projects for improving SchoolStreets$$ competitiveness in the industry.

First of all, Caleb is considering replacing a HP$462$ copy machine. This machine was purchased for $$50,0003-$year ago and is being depreciated over $5$ years to a zero